• Title/Summary/Keyword: Business Model Franchise

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The Effects of Social Capital on the Economic and Noneconomic Performance: Considering the Causal Relationship of Dimensions of Social Capital (사회자본이 경제적 성과와 비경제적 성과에 미치는 영향: 사회자본 차원들의 인과관계를 고려한 접근)

  • Bae, Sang-Wook;Yun, Han-Sung
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.73-101
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    • 2010
  • Using data collected from franchisees from Busan, we empirically examined the relationship both structural (tie strength), relational (trust), and cognitive (shared value) of social capital and between those dimensions and the patterns of economic performance and noneconomic performance (relationship continuity intention). So we established 9 hypotheses to test the structural relationship among dimensions of social capital and performances like below. H1: A franchisee's perceived tie strength with its franchisor will positively influence its trust in the franchisor. H2: A franchisee's perceived shared value with its franchisor will positively influence its trust in the franchisor. H3: A franchisee's perceived tie strength with its franchisor will positively influence its economic performance. H4: A franchisee's perceived shared value with its franchisor will positively influence its economic performance. H5: A franchisee's perceived trust in its franchisor will positively influence its economic performance. H6: A franchisee's perceived tie strength with its franchisor will positively influence its relationship continuity intention with the franchisor. H7: A franchisee's perceived shared value with its franchisor will positively influence its relationship continuity intention with the franchisor. H8: A franchisee's perceived trust in its franchisor will positively influence its relationship continuity intention with the franchisor. H9: A franchisee's perceived economic performance will positively influence its relationship continuity intention with the franchisor. The conceptual model specifying the relationship among dimensions of social capital and performances is presented in Fig. 1. Tests of the hypotheses were performed using a structural equation model. This model also reflected a good fit to the data ($\chi^2$=101.12 df=62 p=0.004, RMSEA=0.050 GFI=0.936 AGFI=0.895 NFI=0.959 CFI=0.986). The standardized solution estimated by the AMOS 7 program was for interpreting the structural results (Table 1). As was expected, tie strength and shared value were founded to be significant predictors of trust (H1 supported; H2 supported). Tie strength and trust have a significant positive effect on economic performance (H3 supported; H5 supported). But shared value have not a significant effect on economic performance (H4 Rejected). Tie strength were not associated with relationship continuity intention (H6 Rejected). While on the other higher shared value, trust, and economic performance have a significant effect on the relationship continuity intention (H7 supported; H8 supported; H9 supported). The results show integratedly that, first, tie strength does not affect directly but affects indirectly on relationship continuity intention via trust and economic performance. Second, shared goals affect directly and do indirectly via trust on relationship continuity intention. But shared goals does not affect via economic performance on relationship continuity intention. Finally, the study suggests important implications for both research and practice for franchise system especially.

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Effects of Environmental Uncertainty on Transaction and Industry Characteristics in the Franchising Markets (환경불확실성이 프랜차이즈 시스템의 거래특성과 산업특성 및 성과에 미치는 영향)

  • Han, Sang-Lin;Baek, Mi-Young
    • Journal of Distribution Research
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    • v.13 no.3
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    • pp.55-77
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    • 2008
  • The purpose of this research is to understand the effects of environmental uncertainty on transaction characteristics, industry factors, and performance in Korean franchising markets. This research tried to investigate both the characteristics of B-to-C service factors and B-to-B industry factors of franchising industry from the perspectives of CLalt, trust, communication, and other important variables. Hypothetical research model was proposed and, by using SPSS and AMOS, research hypotheses and structural equation models were empirically tested and supported. The results showed that environmental uncertainty has negative effects on relationship characteristics and industry characteristics of franchise. Trust showed positive impact on the performance. Managerial implications and limitations of the study results were also discussed. Future research direction was suggested.

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The Marketing Effect of Loyalty Program on Relational Market Behavior : Focusing in Franchise Membership Fitness Club (로열티 프로그램이 고객 참여와 소비자-브랜드 관계에 기초한 관계형 시장 행동에 미치는 영향 : 프랜차이즈 회원제 휘트니스클럽을 대상으로)

  • Yoon, Kyung-Goo;Shin, Geon-Cheol
    • Journal of Distribution Research
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    • v.17 no.2
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    • pp.1-28
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    • 2012
  • I. Introduction : The purpose of this study is to test empirically hypothetical causality among constructs used in previous studies to build the model of relational market behavior on customers' participation and consumer-brand relationship after introducing theories of relationship marketing, loyalty program, consumer-brand relationship, customers' participation in service marketing as previous studies with regard to relational market behavior, which Bagozzi(1995) and Peterson(1995) commented on constructs and definition suggested by Sheth and Parvatiyar (1995). For this purpose, loyalty program by the service provider, customers' participation and consumer-brand relationship as preceding variables explain relational market behavior defined by Sheth and Parvatiyar(1995). This study proposes that loyalty program as a tool of relationship marketing will be effective in that consumers' participation in marketing relationship results in a narrow range of choice(Sheth and Parvatiyar, 1995) because consumers think that their participation motive result in benefits(Peterson, 1995). Also, it is proposed that the quality of consumer-brand relationship explain the performance of relationship as well as the intermediary effect because the loyalty program could be evaluated based on relationship with customers. We reviewed the variables with regard to performance of relationship based on relation maintain in marketing literature, and then tested our hypotheses related to several performance variables including loyalty and intention of relation maintain based on the previous studies and constructs(Bendapudi and Berry, 1997 ; Bettencourt, 1997 ; Palmatier, Dant, Grewal and Evans, 2006 ; You Jae Yi and Soo Jin Lee, 2006). II. Study Model : Analyses about hypothetical causality were proceeded. The marketing effect of loyalty program on relational market behavior was empirically tested in study regarding a service provider. The research model in according to the path hypotheses (loyalty program ${\rightarrow}$ customers' participation ${\rightarrow}$ consumer-brand relationship ${\rightarrow}$ relational market behavior and loyalty program ${\rightarrow}$ consumer-brand relationship, and loyalty program ${\rightarrow}$ relational market behavior and customers' participation ${\rightarrow}$ consumer-brand relationship, and customers' participation ${\rightarrow}$ relational market behavior) proceeded as an activity for customer relation management was suggested. The main purpose of study is to see if relational market behavior could be brought as a result of developing relationship between consumers and a corporate into being stronger and more valuable when a corporate or a service provider try aggressively to build the relationship with customers (Bettencourt, 1997; Palmatier, Dant, Grewal and Evans, 2006; Sheth and Parvatiyar, 1995). III. Conclusion : The results of research into the membership fitness club, one of service areas with high level of customer participation (Bitner, Faranda, Hubbert and Zeithaml, 1997; Chase, 1978; Kelley, Donnelly, Jr. and Skinner, 1990) are as follows: First, causalities in according to path hypotheses were tested, after the preceding variables affecting relational market behavior and conceptual frame were suggested. In study, all hypotheses were supported as expected. This result confirms the proposition suggested by Sheth and Parvatiyar(1995), who claimed that intention of consumer and corporate to participate in marketing relationship brings high level of marketing productivity. Also, as a corporate or a service provider try aggressively to build relationship with customers, the relationship between consumers and a corporate can be developed into stronger and more valuable one (Bettencourt, 1997; Palmatier, Dant, Grewal and Evans, 2006). This finding supports the logic of relationship marketing. Second, because the question regarding the path hypothesis of consumer-brand relationship ${\rightarrow}$ relational market behavior are still at issue, the further analyses were conducted. In particular, there existed the mediating effects of consumer-brand relationship toward relational market behavior. Also, multiple regressions were conducted to see if which one strongly influences relational market behavior among specific question items with regard to consumer-brand relationship. As a result, the influence between items composing consumer-brand relationship and ones composing relational market behavior was different. Among items composing consumer-brand relationship, intimacy was an influence of sustaining relationship, word of mouth, and recommendation, intimacy and interdependence were influences of loyalty, intimacy and self-connection were influences of tolerance and advice. Notably, commitment among items measuring consumer-brand relationship had the negative influence with relational market behavior. This means that bringing relational market behavior is not consumer-brand relationship without personal commitment, but effort to build customer relationship like intimacy, interdependence, and self-connection. This finding confirms the results of Breivik and Thorbjornsen(2008). They reported that six variables composing the quality of consumer-brand relationship have higher explanation in regression model directly affecting performance of consumer-brand relationship. As a result of empirical analysis, among the constructs with regard to consumer-brand relationship, intimacy(B=0.512), interdependence(B=0.196), and quality of partner(B=0.153) had the effects on relation maintain. On the contrary, self-connection, love and passion, and commitment had little effect and did not show the statistical significance(p<0.05). On the other hand, intimacy(B=0.668) and interdependence(B=0.181) had the high regression estimates on word of mouth and recommendation. Regarding the effect on loyalty, explanation level of the model was high(R2=0.515), intimacy(0.538), interdependence(0.223), and quality of partner(0.177) showed the statistical significance(p<0.05). Furthermore, intimacy(0.441) had the strong effect as well as self-connection(0.201) and interdependence (0.163) had the effect on tolerance and forgive. And these three variables showed effects even on advice and suggestion, intimacy(0.373), self-connection(0.270), interdependence (0.155) respectively. Third, in study with regard to the positive effect(loyalty program ${\rightarrow}$ customers' participation, loyalty program ${\rightarrow}$ consumer-brand relationship, loyalty program ${\rightarrow}$ relational market behavior, customers' participation ${\rightarrow}$ consumer-brand relationship, customers' participation ${\rightarrow}$ relational market behavior, consumer-brand relationship ${\rightarrow}$ relational market behavior), the path hypothesis of customers' participation ${\rightarrow}$ consumer-brand relationship, was supported. The fact that path hypothesis of customers' participation ${\rightarrow}$ consumer-brand relationship was supported confirms assertion by Bitner(1995), Fournier(1994), Sheth and Parvatiyar(1995) about consumer relationship to participate in marketing relationship.

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